The Gory Details on Southwestern Energy's Double Miss
Southwestern Energy (NYS: SWN) reported earnings on May 3. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Southwestern Energy missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share shrank significantly.
Gross margins expanded, operating margins dropped, net margins shrank.
Southwestern Energy logged revenue of $466.3 million. The nine analysts polled by S&P Capital IQ foresaw sales of $482.2 million on the same basis. GAAP reported sales were 2.9% lower than the prior-year quarter's $676.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.31. The 28 earnings estimates compiled by S&P Capital IQ predicted $0.32 per share. GAAP EPS of $0.31 for Q1 were 21% lower than the prior-year quarter's $0.39 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 68.4%, 200 basis points better than the prior-year quarter. Operating margin was 28.3%, 610 basis points worse than the prior-year quarter. Net margin was 16.4%, 380 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $476.2 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $2.05 billion. The average EPS estimate is $1.29.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 999 members out of 1,041 rating the stock outperform, and 42 members rating it underperform. Among 178 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 171 give Southwestern Energy a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Southwestern Energy is outperform, with an average price target of $39.07.
Are you missing a major story in the energy space? Read about "One Stock to Own Before Nat Gas Act 2011 Becomes Law." Click here for instant access to this free report.
- Add Southwestern Energy to My Watchlist.
At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.